Budgeting with Cards at UGA
College students deal with numerous problems that they never had to deal with before. One of those problems is budgeting. Incoming freshman enounter problems with budgeting because their parents took care of it before. But now that students are living without the help from them, money becomes problematic. Budgeting is not as hard as people make it. A student needs checking account from a local bank . Freshman can get credit cards, debit cards, or any form of money that is particular to a college, such as bulldog bucks. Cash can be difficult to deal with and can be easily lost, so carrying large amounts of cash on hand is never a good idea. Because of this, a checking account is the best thing to have in a college setting. Money management can be difficult if a student doesn't have cash, because unlike cash, cards are a little harder to tell how much and how fast a student is spending his/her money. Many students were interviewed about how they managed money, and the general result was that a debit checking account is the most popular way freshman handle their money. Credit Cards Getting a credit card is a good alternative to cash. However, a credit card is probably not the best idea for a college student for numerous reasons. To see the pros and cons of credit cards, click here . Credit cards are complicated and have many rules and procedures that people have to follow. To see what exactly a credit card is, click here . Credit cards seem to be too easy to use, and they a seductively easy feel to spending money and students can get into trouble quickly. Freshman who have no past experience with numerous expenditures might get in over there head. "The problem with young people owning a credit card is that they rarely have enough income to cover the available credit, and if they run up the card they get sucked into the minimum payment trap for life" (Pros and Cons). During the interviews, not a single person out of the 20 people had a credit card. The research shows freshman rarely own credit cards. Debit Cards Most students believe that a debit card is the best alternative to carrying cash. To see exactly what a debit card is, click here . Debit cards are a great tool for easily withdrawing money and depositing money into a checking account. Mom and Dad can put money onto the debit card checking account whenever they want from their computer. Parents can monitor spending habits and see if their child is out of money or if they have too much. That may seem overbearing, but this aspect of a checking account accessible by parents is good for learning how to handle money. With debit cards, students don't ever have to deal with loose change which, more likely than not, never gets used. Also, freshman can online shop, something that was impossible with cash. One of the best things about a debit card is that it keeps the student in budget. "When you use a debit card you're limited to spending the amount of money you have in the associated account. This prevents you from accumulating debt or being charged interest and those annoying late fees from a credit card company" (Money Girl). Whenever the student needs a chunk of money, they can go online and make the transfer. Also, the student can purchase an app for their phone so they can do it wherever they are at any time. The simplicity and quickness are great charateristics of a debit card checking account. To see all the pros and cons of using debit cards, click here . Out of the 20 people interviewed in the research, 18 had a debit card checking account. Bulldog Bucks Bulldog bucks are similar to debit cards but they are exclusive to athens. "Bulldog bucks can be used for all sorts of different things around campus: Dining Halls, residence hall laundry machines, bookstores, health center and pharmacy, printing in the computer labs around campus, ramsey center services, tate center services, and snack/soda machines around campus" (The Way to Pay). Bulldog bucks is a great way for a student who doens't have a checking account. Student's parents can put money onto the bulldog buck's account whenever needed so the student can always have some money. 20 out of the 20 people interviewed had bulldog bucks. The survery shows that bulldog buck's is very popular and can be just as easy as debit cards. Money Management For freshman, money mangement is of extreme importance. Laying out an expenditures and income chart will be helpful to freshman, at least for the first semester. Without good budgeting skills, freshman can get in over there head and stress will insue. Stress is the last thing a freshman needs because they have enough to deal with. Not only stress will come, but if a student spends all the money they have, then they will not be able to do anything else and his/her's parents will no longer trust their child with money. For most students, the only income comes from the parents. "The key to spending within your means is to know your expenses and to spend less than you make" (Budgeting). If a student follows this rule, than they will have nothing to worry about regarding money. To know how to set up a budget, click here . Checking account A checking account holds all the money that is being used through a debit or credit card. "A checking account is an account that you have with a bank. They hold your money and allow you to withdraw it, buy things with it and pay bills with it. The bank will issue you checks, a debit card and/or an ATM card" (What is a checking account?) To know more about a checking account, click here . Works Cited "Budgeting". Web. Nov 8, 2011. : http://www.practicalmoneyskills.com/personalfinance/savingspending/budgeting/ "Money Girl". Web. Nov 8, 2011. : http://moneygirl.quickanddirtytips.com/pros-and-cons-of-debit-cards.aspx "Pros and Cons of Credit Cards". Web. Nov 8, 2011. : http://frugaldad.com/2008/12/10/the-pros-and-cons-of-credit-cards/ "The Way to Pay". Web. Nov 8, 2011. http://bulldogbucks.uga.edu/oncampus.php "What is a Checking Account?". Web. Nov 8, 2011. : http://freefrombroke.com/checking-account-definition/ : Category:Budgeting